Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


NZ dollar gains after weaker US economic reports

NZ dollar gains after weaker US economic reports damp demand for greenback

By Tina Morrison

June 26 (BusinessDesk) - The New Zealand dollar advanced after US economic reports raised concerns about the strength of the world's largest economy, damping demand for the greenback.

The kiwi rose to 87.28 US cents at 8am in Wellington, from 86.78 cents at 5pm yesterday. The trade-weighted index touched a high of 81.26 overnight, close to the record 81.29 reached earlier this month, and was recently at 81.19 from 80.80 yesterday.

The US dollar index, which measures the greenback against a basket of currencies, touched a five-week low overnight after a report showed the US economy shrank at a 2.9 percent annual rate in the first quarter, instead of the 1 percent pace reported last month, the largest revision since the series began in 1976. Economists had expected a decline of about 1.8 percent. Meanwhile, a separate report showed orders for long-lasting US manufactured goods unexpectedly declined 1 percent last month, the first drop in three months.

"The US dollar weakened across the board due to weaker GDP data," ANZ Bank New Zealand strategist Carrick Lucas and senior foreign exchange strategist Sam Tuck said in a note. "Uncertainty in the US will keep NZD/USD stronger for longer."

The kiwi will probably trade between 86.80 US cents and 87.60 cents today, ANZ said.

Stronger US GDP in the second quarter may largely offset the first quarter declines, ANZ said.

Tonight, traders will be eyeing an inflation report in the US which is closely watched by the Federal Reserve. The core PCE deflator is expected to rise to a 1.6 percent annual pace in May, from a previous pace of 1.4 percent.

In New Zealand today, the Reserve Bank publishes details of mortgage lending for high debt borrowers at 3pm.

The New Zealand dollar advanced to 92.88 Australian cents from 92.68 cents yesterday, gained to 64.06 euro cents from 63.76 cents, rose to 51.42 British pence from 51.12 pence and jumped to 88.93 yen from 88.42 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Maritime: Navigation Safety Review Raises Big Issues For The Govt

Shipping Federation: "The reports makes it clear that the ratification of the Maritime Labour convention (MLC) is long overdue. Only when the MLC is ratified will Maritime NZ be able to inspect and enforce the labour conditions on international ships visiting our ports." More>>

ALSO:

100 Years After Einstein Prediction: Gravitational Waves Found

For the first time, scientists have observed ripples in the fabric of spacetime called gravitational waves, arriving at the earth from a cataclysmic event in the distant universe. This confirms a major prediction of Albert Einstein’s 1915 general theory of relativity and opens an unprecedented new window onto the cosmos. More>>

ALSO:

Farming: Alliance Plans To Start Docking Farmer Payments

Alliance Group, New Zealand's second-largest meat cooperative, plans to start withholding some stock payments to its farmers from next week to bolster its balance sheet and force suppliers to meet their share requirements. More>>

ALSO:

Gambling: SkyCity First Half Profit Rises 30%, Helped By High Rollers

SkyCity anticipates the Auckland business will benefit from government gaming concessions which were triggered on Nov. 11 in recognition of SkyCity’s $470 million Convention Centre development. Morrison said the concessions would allow the Auckland business to lift its activity during peak period, noting it had a record revenue week over the Christmas and New Year period. More>>

ALSO:

Money For Light: Kiwi Scientists Secure Preferential Access To Synchrotron

Science and Innovation Minister Steven Joyce today announced a three-year investment of $2.8 million in the Australian Synchrotron, the largest piece of scientific infrastructure in the Southern Hemisphere, to secure preferential access for Kiwi scientists. More>>

Telco Industry Report: Investment Hits $1.7 Bln A Year

Investment in the telecommunications sector is $1.7 billion a year, proportionately one of the highest levels in the OECD, according to a report released today on the status of the New Zealand sector. More>>

ALSO:

PGPs: New Programme Sets Sights On Strong Wool

A new collaboration between The New Zealand Merino Company (NZM) and the Ministry for Primary Industries (MPI), announced today, aims to deliver premiums for New Zealand's strong wool sector... More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news